HF Sinclair Rides Demand-Fueled Waves in U.S. Refining Industry

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

The U.S. Petroleum Refining Industry saw some of its strongest business in years in the second quarter of 2026, which was reflected in HF Sinclair's operations. Core profits at the company's Refining segment more than doubled from a year ago.

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Global Crisis Bolsters U.S. Refining

HF Sinclair Corporation reported its strongest quarterly profit since 2022, as core profits in its Refining segment more than doubled from a year ago to $1.02 billion. Steady demand, a tight supply and favorable crack spreads fueled strong refining margins and sales volumes, particularly in the Mid-Continental and Western U.S. regions. Industrial Info resources is tracking about $1.7 billion worth of active and proposed projects from HF Sinclair, most of which is attributed to the company's Refining segment.

"HF Sinclair refineries have performed extremely well this year ," said Hillary Stevenson, a vice president for Energy Intelligence at IIR Energy. "We have not reported any unplanned outages so far this year at any of their nine plants in the U.S.," which have a total capacity of 684,000 barrels per day (bpd).

Disruptions to the oil trade around the Strait of Hormuz fueled higher and more volatile crude oil prices through most of the second quarter, according to the U.S. Energy Information Administration (EIA). This forced international buyers to find alternative sources for petroleum products--which, in turn, drove U.S. refinery margins, production and exports higher.

"U.S. refineries ran at unseasonally high levels in second-quarter 2026, processing the most crude oil for the quarter since 2019, when refining capacity was 4% higher," the EIA said in a July 15 report.

According to Industrial Info Resources data, three refineries owned by HF Sinclair are preparing to begin construction on improvement projects within the coming year. Two projects are in the works for the company's refinery in Casper, Wyoming: an upgrade to the fluid catalytic cracker unit (FCCU) and an upgrade to the crude and vacuum unit, both of which involve modifications to the main fractionation columns.

Industrial Info Resources offers more information on the Casper projects in its Global Market Intelligence (GMI) Petroleum Refining Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and detailed reports on the FCCU and crude and vacuum upgrades.

Total sales for HF Sinclair's second quarter totaled $10.4 billion, a 53% increase from second-quarter 2025; net income totaled $892 million, compared with $208 million in the same period last year.

"We believe the fundamentals that drove strong second quarter results across each of our business segments will persist in the third quarter, providing a positive backdrop as we move through the remainder of the year," said Franklin Myers, the chief executive officer of HF Sinclair, in a quarterly earnings-related press release.

By the Numbers

• About $1.7 billion: Total value of active and proposed projects from HF Sinclair tracked by Industrial Info Resources
• $1.02 billion: Second-quarter core profits in the Refining segment, more than double those of second-quarter 2025
• $207 million: Second-quarter core profits in the Lubricants & Specialties segment, up from $55 million in second-quarter 2025

New Life for Lubricants Business

HF Sinclair also announced it now plans to separate its Lubricants & Specialties segment into an independent, publicly traded company. Executives said the company would retire its base oil refining assets in Mississauga, Ontario, with the bulk of the transition expected throughout 2027.

Higher sales volumes and product prices drove second-quarter core profits in the Lubricants & Specialties segment to $207 million, up from $55 million in second-quarter 2025.

"The Lubricants & Specialties business will maintain a strong presence in the Ontario region, including continued operation of its R&D laboratory, lubricant blending and packaging, as well as supply chain, logistics and commercial operations," HF Sinclair said in a separate press release Tuesday. Readers can learn more about the Ontario operations through a detailed plant profile.

HF Sinclair said the newly formed company would continue to offer a "full suite" of base oils to the market through existing assets at HF Sinclair's refining complex in Tulsa, Oklahoma. While the Tulsa refinery primarily processes sweet crude oil, it also produces base oils, specialty process oils, horticultural oils, asphalt modifiers and wax, which are marketed internationally, according to the company's website. Readers can consult a detailed plant profile.

Sonneborn Incorporated, an HF Sinclair subsidiary, operates two other facilities that produce specialized lubricants, oils and waxes, among other products: a grade-oil and waxes plant in Petrolia, Pennsylvania, and a complex in Amsterdam, Netherlands, which makes specialized lubricants and base oils for the European market. At the Petrolia plant, Sonneborn is considering a proposed series of upgrades to the piping system; it is not yet known how this project would be affected by a newly formed company.

Readers can learn more from detailed profiles of the Petrolia and Amsterdam plants, as well as a report on the proposed piping upgrades.

"The transformed model is expected to improve service through a more conveniently located distribution network across North America, while maintaining the quality standards customers expect across base oils, finished lubricants and specialty offerings," HF Sinclair said in the press release.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for active and proposed projects from HF Sinclair.

Key Takeaways

• HF Sinclair reported its strongest quarterly profit since 2022, fueled by core profits in its Refining segment.
• U.S. refineries ran at unseasonally high levels in second-quarter 2026, processing the most crude oil for the quarter since 2019.
• HF Sinclair plans to separate its Lubricants & Specialties segment into an independent, publicly traded company.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).